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Problem 1: Sharon owns a restaurant and also caters food for special events. Given the various sources and types of costs in her business, which of the following statements represent advice that you would give to Sharon?
Option 1: Job costing might be useful for the catering business.
Option 2: Separating costs into materials, labor, and overhead will help predict future costs.
Option 3: Process costing might be useful for the restaurant business.
Option 4: Activity-based costing will simplify the accounting for overhead costs and allow Sharon to rely on estimates.
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